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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: AmericanVoter who wrote (6210)	4/8/2000 6:32:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

amein.."tax deferment" if you are a seller of an option, be it put or call, you can use a repair strategy to take a paper loss (short term) to offset short term gains. say you sell a covered call....if the stock moves up, and the call goes against you... buy the call back at the higher price, establish the tax loss, resell a further out expiration at an even higher price...on and on, until you decide to end the position in a year more favorable tax wise to you...same can be done with put sales... also note that reporting to the irs of option activity is truly an honor system, as due to the complexity of option contracts they are not shown on a 1099. so it is best to keep concise records on your own, as your broker is not required to do so.